The issue of BlockFi backfire as BlockFi proceed Sue the State Commission For Not Accepting Its Surrendered License

It been a while BlockFi the bankruptcy crypto exchange has been going through a difficult environment, the crypto lender filed for chapter 11 in November after the collapse of FTX, BlockFi revealed the company was exposed with over $1.2 billion to the FTX and its capital arm, Alameda Research. BlockFi went through a lot with having different assets and deposit all around. In fact the crypto lender announced another $225 million that was not issued by FDIC in deposits were held at failure bank Silicon Valley Bank.

However, in January after BlockFi filed for bankruptcy it was been notified the company must surrender its Connecticut, that is money transmitter license to backup it court filing.

If you follow the bankruptcy news of BlockFi you'll know about this surrender and when the bankrupt crypto exchange went up to surrender its license in January before regulators said it would be an court proceedings for the company.

The regulators insisted on administration proceeding for BlockFi after the state regulators refused to accept BlockFi offer to surrender its money transmitter license, meanwhile BlockFi Connecticut serve as evidence for the company to bypass another court proceeding. Honestly everyone was confused about regulators action against BlockFi when it sent the company a letter that its Connecticut license wouldn't be accepted, even ordered to cease the license from not involved in any business within the state without any reason for doing that.

BlockFi try to solve this so its customers won't be affected by halt customers withdrawal and tried to surrender its money transmitter license again in March but no response, instead the company was told to pay a $1million fine to avoid a court proceeding. Many raised concerning about how the Connecticut Banking Attorney requesting for bribery to free BlockFi.
Honestly it's unfair why would government agency requesting and putting costly case over a license ready to surrender, so definitely they revoked the license purposely to assess monetary penalties from BlockFi, which is not proper.

This action really pissed off BlockFi, and the company went ahead to Sue the Connecticut Banking commissioner for not accepting its Connecticut transmitter license and also threaten BlockFi to pay $1 million to avoid court proceeding.

I was think a company that owes over $1 billion to its creditors, and even trying to sell part of its assets to pay for their creditors, and you still requesting for money that is not even part of their plans. Can you now see sueing Connecticut Banking Commission Jorge Perez is not a bad move for the company and court respond to the lawsuit said the department violated Section 525 by revoking BlockFi's license and going after unclear penalties.

Well, a summon letter already sent to Connecticut Banking commissioner Perez and BlockFi to argue in the court of law in July 6.